All tests are dated and appear as a progression on various themes. Some of the strategies were found on the internet and then modified to adapt to my trading philosophy. Always trying to do better and better.

I would say all people would like to build a nice retirement account if they could. However, the process has always been considered difficult and often required professional help while most of the time they could just do it all on their own. What follows is all about a long-term trading strategy that could simply help anyone take the first step in that direction. And if able, do even more.

After dumping the Ichimoku Kinko trading script, I decided to improve another old and free WL4 script. This one based on a Bollinger Band system. The intention was to study the strengths and weaknesses of the trading procedures implemented in the original design and then try to improve the trading strategy to reach better performance levels.

What follows are some of my posts on LinkedIn presented in reverse order, starting with the most recent and going back in time. Therefore it might be preferable to read this from the bottom up to date.

My intent was to use a script that uses a lot of technical indicators, modify its trading philosophy to more reflect my mental view of price movements. I've extensively modified the Hershey Equity Version 5.0 script (over 1,000 lines of code) as mentioned in a previous post. My primary objective was to have the portfolio exceed 100M; a 20-fold appreciation over the testing period. I program mostly blind, seeing only about 220 of the 1,500 trading days of a test.

Over the past few weeks, I have presented charts and portfolio tests going from the almost totally random entries to using administrative investment policies. Some of the tests using my trading methods showed extraordinary performance levels; way beyond what is estimated as statistically possible in academic literature or elsewhere.

This new test is based on the Momentum Trader script on the old WL4 site. I did modify it extensively as you would expect, not only in its trading philosophy but also in its trading procedures. My primary orientation was to add more pressure to the accumulative functions (go to level 2) and thereby increase overall performance. Naturally, this would require higher accumulative holding functions; pushing the decision surrogate to trade more often and with a higher trade basis subject to available excess equity.

This new test has a different vision of the world. I looked at it as “give me the money” since it ends up mostly in cash which I often consider a waste. But then again, that your portfolio ends up in cash at this level is just another representation of market opportunity.

The script trades a lot, at times you think that is all it does. But nevertheless, slowly it accumulates shares. It trades on every market swing, will take its profits and will pump them back into the system to buy even more shares on the next swing.

The following test is a little weird. For one, the script was developed in mid-April using a single stock: RIMM. This in itself should have for conclusion: over-optimized, curve-fitted to the extreme and should, therefore, turn out to be just another script that falls down on its face went using different stocks.

However, this script, in particular, does not use technical indicators per say. Trading goes through a decision surrogate which will select price relative trades based on the state of a moving trading window.

Here are the results of the test using the original version of the QQQ and QID Trader trading script as found on the old Wealth-Lab 4 site. (Note: the old Wealth-Lab 4 website has been shut down. It has been replaced by a new one).

This new test is based on the QQQ and QID Trader (2007) A trading script found on the old Wealth-Lab 4 website. The original script barely beats the Buy & Hold strategy over the 5.83 years of the test (results will be provided shortly).

A number of modifications, to change most of its trading philosophy, and methodology was applied to more closely resemble mine. This underlying accumulative inventory stance changed the very nature of the script.

Lately, I made some modifications to my holding functions. I did not test them extensively as the first results were more than impressive and I did not want to show too much. As I've posted on the WL4 website, here is one picture that speaks for itself.